Market volatility doesn't phase most RRSP investors: survey

Market volatility doesn’t phase most RRSP investors: survey

RBC study examines RRSP contribution trends

By: IE Staff
December 14, 2007 October 31, 2019
10:15

A majority of RRSP investors (60%) are not concerned about market volatility and the number of Canadians who are planning to contribute to their RRSP is unchanged from 2006 (49%), according to the 18th annual RBC RRSP poll.

Among the 40% of those polled who are worried about market volatility, more than half (54%) stayed the course and did not make changes to their investments.

Current market fluctuations may feel more severe because equity markets experienced a period of unusually low volatility between 2003 and mid-2007, RBC notes. During that period, there were only a handful of days when the market moved up or down by more than 2%.

While it is also advisable for many Canadians to maximize their RRSP contributions, only three in ten plan to do so for the 2007 tax year.

Other findings for the 2007 poll include:

More than two in three Canadians have an RRSP (68%), up from 57% in 2002.
Many Canadians are waiting until the last minute to contribute to their RRSPs. Nearly one in three (32%) of those who plan to but have not yet made an RRSP contribution expect to do so just before the February 29th, 2008 deadline.
The average planned RRSP contribution for the 2007 tax year is $5,967, which has doubled since 1993 ($2,866).
Among Canadians who have an RRSP, the average value of their personal RRSPs is $72,481. This figure is highest in B.C. ($88,534) and lowest in Quebec ($49,621). Those over 55 have an average of $102,628 in their RRSPs.
Only three in ten Canadians plan to maximize their RRSP contribution for the 2007 tax year.
Only one in three RRSP investors (33%) are making regular contributions through a plan.
Mutual funds remain the most popular RRSP investment choice for the 2007 tax year. More than half of the RRSP investors polled (55%) plan to make their RRSP contribution by purchasing mutual funds.
Most Canadians (58%) get the help of a professional financial advisor when making decisions about their RRSPs and other investments and among those who are over 55 years of age, this figure rises to 66%.

The 18th Annual RBC RRSP Poll was conducted by Ipsos Reid from October 23 to November 5, 2007. The telephone survey was based on responses from a random sample of 1,200 Canadian adults (aged 18 and over).